CANADA STOCKS-TSX rallies as Valeant rebounds, July GDP data upbeat

3 Min Read

(Adds details on poll and data, market reaction)

* TSX up 182.59 points, or 1.4 percent, at 13,219.55

* All 10 main groups are higher

By Solarina Ho

TORONTO, Sept 30 (Reuters) - Canada’s main stock index rallied more than 1 percent on Wednesday as higher-than-expected domestic growth data provided a healthy boost to sentiment and as Valeant Pharmaceuticals International Inc shares rebounded after being battered by charges of price gauging.

Canada’s economy grew 0.3 percent in July, the second consecutive month of growth after contracting for the first five months of 2015. Financials, energy, mining and manufacturing were among sectors leading the growth.

The figures supported the idea that any recession in the first half of the year was short-lived.

The financials group, which makes up roughly a third of the index, climbed 1.7 percent. Toronto-Dominion Bank rose 2.1 percent to C$52.53, and Royal Bank of Canada jumped 2.1 percent to C$73.53. Six of the index’s 10 most influential gainers were financial names.

All 10 of the index’s main sectors were in positive territory. Advancing issues outnumbering declining ones on the TSX by 197 to 42, for a 4.69-to-1 ratio on the upside.

The TSX has been extremely volatile in the last month and has been on a steady decline since mid-April, having given back some 15 percent during that period.

A Reuters poll released on Wednesday showed that investors believed the index would post its first loss this year since 2011, hurt by concerns including China’s growth and commodity prices.

Valeant, regularly a significant mover of the index, jumped 4.7 percent to C$222.10 after tumbling more than 30 percent over the last 1-1/2 weeks. Drugmakers like Valeant have come under fire in recent days over accusations of overcharging for their products.

Hudson’s Bay Co jumped 11.4 percent to C$23.10 after the retailer raised its sales forecast following the closing of its acquisition of German department store chain Galeria Kaufhof.

On the downside, gold miners failed to make gains, shadowed by bullion prices that were on track for their biggest quarterly loss in a year.

However, the overall materials group, home to mining and resource names, climbed 1.0 percent. (Reporting by Solarina Ho; Editing by Lisa Von Ahn)